Qld reaction as Star found ‘unsuitable’ to hold Sydney casino licence

The LNP has called on the inquiry into Star’s Queensland operations to review the gambling giant’s dealings with ministers, lobbyists and the gaming regulator.

The LNP has called on the inquiry into Star’s Queensland operations to review the gambling giant’s dealings with ministers, lobbyists and the gaming regulator in the wake of a bombshell NSW review.

The gambling giant, which are behind the $3.6b Queen’s Wharf development, was branded “unsuitable” to hold a Sydney casino licence following the NSW inquiry.

The report made public on Tuesday was highly critical of the company – which also operates The Star Gold Coast and Treasury Brisbane – with Queensland Attorney-General Shannon Fentiman saying the findings were “extremely serious and shocking”.

Among reviewer Adam Bell SC’s findings were failures in the company’s anti-money laundering procedures, risks of criminal infiltration and evidence of players being exposed to gambling harm.

An artist’s impression of the completed Queen’s Wharf project in Brisbane’s CBD.

But the review does not detail what changes the company would need to undertake to become suitable, saying that was a matter for the NSW gaming authority.

Following evidence emerging from hearings during the Bell review, Ms Fentiman announced in June the state would conduct its own independent review into Star’s Queensland casino operations, to be led by retired Supreme Court judge Robert Gotterson.

On Tuesday she said “the evidence and findings in the independent review of The Star Entertainment Group by Adam Bell SC … are extremely serious and shocking”.

“Queensland’s independent expert review of Star by The Honourable Robert Gotterson will carefully consider the findings and recommendations in Mr Bell’s review, which is in line with its terms of reference,” she said.

‘Shocking and serious’: Attorney-General Shannon Fentiman’s reaction to the findings about Star. Picture: NewsWire / Sarah Marshall

Opposition Attorney-General Tim Nicholls said the “explosive findings” were further evidence the terms of reference for the Queensland review into Star “do not go far enough”.

“The terms of reference for the Queensland review led by retired Justice Robert Gotterson KC, excludes public hearings or inquiry into the suitability of Star Entertainment Group to hold a casino licence, saying only that it will provide “advice,” he said.

“This effectively ties Justice Gotterson KC’s hands behind his back when it comes to carrying out a proper inquiry into Star Entertainment here in Queensland.”

Instead Mr Nicholls has pushed for the inquiry to also include dealings between “ministers, government departments, the Office of Liquor and Gaming Regulation, Star board members and consultants, lobbyists and unions”.

“We already know that Star secretly engaged the Premier’s former Deputy Chief of Staff Evan Moorhead’s lobbying firm Anacta Strategies, and hired former Labor candidate Corinne Mulholland as its in-house lobbyist together with links to other well-known Labor and union members,” he said.

“The Attorney-General must widen the terms of reference and give Mr Gotterson the full powers of a Commission of Inquiry so Queenslanders can have confidence in the casino industry and know that our state is free from any taint of illegality, money laundering, terrorism and undue political influence.”

The Gotterson review is due to deliver its report to Attorney-General Shannon Fentiman by September 30.

The proposed Queens Wharf development. Picture: Supplied

During August’s public hearings Mr Gotterson heard evidence of several high-rollers banned from the Sydney casino by the NSW Police Commissioner being lured to Queensland to gamble at Star.

One was given trips on a private jet, a $52,000 Rolex and luxury accommodation despite having suspected links to criminal activity.

Star went into a trading halt on Monday ahead of the expected release of the Bell review.

In a statement issued to the ASX on Tuesday, the company noted the NSW Independent Casino Commission had served Star a “show cause notice”, with 14 days to respond.

“The Star is currently considering the report and the matters raised in the notice,” the statement read.

NICC chief commissioner Phillip Crawford said there were a range of implications from the Bell review“that need to be worked through”.

“The report is, quite frankly, shocking. It provides evidence of an extensive compliance breakdown in key areas of The Star’s business,” he said.

“Not only were huge amounts of money disguised by the casino as hotel expenses, but vast sums of cash evaded anti-money laundering protocols in numerous situations, most alarmingly through Salon 95 – the secret room with a second cash cage.

“In addition to Bell’s analysis of the very real risks of criminal infiltration and the concealment with which senior staff conducted business, the report details cases of individual patrons exposed to gambling harms.”

Mr Crawford said once Star had been given the opportunity to respond to the show cause notice, “we will be in a position to determine an appropriate disciplinary approach”.